Background

Background Throughout its rich, almost century-old history, Metallurgical Plant Electrostal JSC has been a leading Russian manufacturer of high-quality steels for the key industries in wide ranges of grade and size - from wire to large-sized forgings. Wide experience and professional skills of the company s specialists, numbering more than 5000 employees, greatly accelerate introduction of scientific and technological achievements into production to meet international standards and fulfill the most demanding requirements of its customers. 1917 1923-1948 1964-1984 2009-2014 2

Partners and Customers Headquartered in Moscow region, Russia, Metallurgical Plant Electrostal JSC benefits much from its strategic proximity to key European markets. The company s impressive list of partners and customers across various industry groups and geographies is a further proof point of its high professionalism. North America Europe Asia Europe France Germany Czech Rep. Bulgaria Serbia Lithuania Asia North America India China Turkey Taiwan USA 3

Partners and Customers The company s key customers include main Russian aircraft engine manufacturers, a great number of defense enterprises, engineering and aerospace companies, power and oil and gas complexes as well as auto manufacturers. 4

Performance Metallurgical Plant Electrostal JSC shows strong operational results with profitable advance in its core businesses and continued advancement in the target markets. Turnover, USD mio Cumulative investment, USD mio 200 2014 100 0 124 167 159 174 190 2010 2011 2012 2013 2014 2013 2012 2011 2010 75 49 21 16 47 Over $ 200 mio 5

Steel Grades Assortment The product portfolio of Metallurgical Plant Electrostal JSC includes more than 2000 grades of steels and alloys. Practically all steel grades manufactured today by Russian enterprises of quality metallurgy have been developed and mastered by Metallurgical Plant Electrostal JSC in close cooperation with the leading Russian research institutes including the All-Russian Research Institute of Aviation Materials (VIAM). Alloy Group Heat-Resistant Alloy Stainless Steel High-Speed Steel Tool Steel Grades Inconel 625 (2.4856), Inconel 718 (2.4668), Inconel 617 (2.4663), Inco Alloy C276 (1.4819) Inconel 600 (2.4816), Inconel 601 (2.4851) Inconel 751, Incoloy 800 (1.4876), Incoloy 825 Nimonic 80A (2.4952) 1.4021, 1.4025, 1.4028, 1.4034, 1.4301, 1.4401, 1.4828 (Aisi 309), 1.4821 (Aisi 310, Aisi 314), 1.4550 (Aisi 347), 1.4542 (17-4PH), 1.4545 (15-5PH), 1.4548, including valve steel such as 1.4718 and 1.4871, etc. 1.3202, 1.3243, 1.3343, 1.3344, 1.3355, 1.3392, М2, М4, Т1, etc. 1.2080, 1.2210, 1.2343, 1.2344, 1.2363, 1.2365, 1.2367, 1.2379, 1.2436, 1.2510, 1.2714, 1.2764, 1.2767, 1.2842 (А2, D2, H11, H13, S5, S7, O1) 6

Process Flow Metallurgical Plant Electrostal JSC is equipped with state-of-the-art facilities that allow to use all known special steel melting/remelting methods and a combination of different deformation methods followed by heat treatment and machining. Raw Material Melting Electric Arc Furnace (EAF) Open Induction Furnace (OIF) Vacuum Induction Melting Furnace (VIM) Remelting Vacuum Arc Remelting (VAR) Electro Slag Remelting (ESR) Electron Beam Remelting(EBR) Plasma Arc Remelting(PAR) Conversion Forging Rolling Heat Treatment Machining Inspection Bars, Wire & Flat Product Net Shape Parts 7

Foundry Metallurgical Plant Electrostal JSC has gained extensive experience in production of high-quality metal using special electrometallurgical processes which allow to obtain high degree of metal purity free from gases, non-metallic inclusions as well as harmful non-ferrous metals, and good recovery of alloy and modifying elements to achieve a dense, chemically uniform structure throughout the whole ingot. All equipment meets modern standards of quality, environmental friendliness and reliability and supplied by globally known companies such as ALD (Germany), CONSARC (UK), ABP (Germany), etc. Melting facilities Capacity Ingot weight Ingot dia. EAF, OIF, VIM, VAR, ESR, PAR, EBR min 1 t max 20 t min 0.5 t max 4.5 t min 165 mm max 700 mm depending on melting method 8

Press-Forging Facilities Fully automated forging facilities are highly flexible which gives Metallurgical Plant Electrostal JSC the inherent advantage to simultaneously meet different customer demands and optimize metal deformation layout to produce forgings of top-quality. Production departments are equipped with modern heat treatment and machining lines. Forging facilities Capacity Product range Forging presses, radial-forging machines, horizontal extruding presses, hammers min 16 MN max 63 MN Round and square rods, 80 mm - 500 mm Round and square forging stock, 60 mm - 200 mm Slabs, 80-300 mm x 320-600 mm Disks, 350 mm 1000 mm Press-formed items, 80 mm 210 mm Profile shafts 9

Press-Forging Facilities Metallurgical Plant Electrostal JSC is justifiably proud of its manufacturing unit for production of die forgings which embodies the most recent advances in science and technology and is able to fulfill the most specific requirements of customers from high-tech industries. The equipment is supplied by such well-known companies as SMS MEER, Siempelkamp, GLAMA, KASTO (Germany), Fontijne Grotner Group (Holland & USA), Honor Seiki Co (Taiwan), etc. Unit facilities Product range 200 MN closed-die forging press, ring rolling mills, ring expanders, fully automated heat treatment and machining lines Seamless rolled rings dia. 300 mm - 4000 mm, height 30 mm - 600 mm, wall thickness min 20 mm Die-forged discs and shafts max dia. 1200 mm, max weight 3000 kg Profile shafts max weight 1500 kg 10

Rolling Facilities Rolling facilities used by Metallurgical Plant Electrostal JSC allow to produce materials with strong mechanical properties, tight thickness tolerances and high level of surface quality. Production departments are equipped with advanced heat treatment lines used for annealing, tempering and austenitization of highest quality. Rolling facilities Product range Accuracy degree Cold and hot rolling mills, wire drawing mills Round bars, 8 mm - 110 mm Small and medium long product of round, square and hex crosssection, 6.5 mm - 75 mm Strip, 6х40 mm - 20х55 mm Wire, 0.02 mm 7.5 mm Н9-H11 11

Inspection Metallurgical Plant Electrostal JSC is focused on continuous improvement of product quality and application of new technologies to ensure efficient production of the required quality at all stages of production. Complex manufacturing processes are backed up by exhaustive product quality control, including non-destructive testing, and metallurgical processes research carried out by in-house specialized labs. They allow to take regular and focused measures aimed at technology optimization and development of advanced technological processes and new type of steel products. There are proximate analysis labs in all foundry shops which control chemical composition of steel and its quality throughout the whole melting cycle. 12

Product Portfolio Traditional product portfolio of Metallurgical Plant Electrostal JSC includes forgings, discs, rods, wire, flat product as well as profile shafts and rings with full mechanical and heat treatment. The company is one of the main and unique Russian suppliers of semi-finished items of blades, disks, shafts and rings for gas turbine engines. Items Hot-rolled bars Forged bars Bars with special surface finish Calibrated bars Discs Cold-drawn wire Cold-rolled strip Seamless rolled rings Die-forged discs and shafts Profile shafts Dimensions dia. 8 mm 100 mm dia. 180 mm 500 mm dia. 3 mm 35 mm dia. 5 mm 35 mm max dia. 1100 mm dia. 0.02 mm 7.5 mm thk. 0.05 mm 2.5 mm wdth. 40 mm 280 mm dia. 300 mm - 4000 mm hght. 30 mm - 600 mm max dia. 1200 mm max wght. 3000 kg max wght. 1500 kg 13

Quality Management System Customer satisfaction by means of product quality is at the heart of the company operation. The Quality Management System of Metallurgical Plant Electrostal JSC, certified for the compliance with the requirements of AS/EN 9100 and ISO 9100:2008, ensures high quality of its developments and products. Accreditation and Certification Quality Management System ISO 9001:2008. Application EN 9100:2009 (aircraft). Environmental Management System ISO14001:2004. Approval by Interstate Aviation Committee for production of aviation materials. Approval by Mendeleev Center of Standardization, Metrology and Certification for calibration works. Approval by Certification center Material for the competence and expertize of testing laboratory. 14

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ELECTROSTAL Metallurgical Plant Electrostal JSC ul. Zheleznodorozhnaya, 1, Electrostal Moscow region, 144002 Russia Tel.: +7 49657 7 03 17 Fax: +7 49657 7 11 89 E-mail: development@mpelsteel.ru www.elsteel.ru